The 2021 return shows the full amount of disability pay, including the $10,000 paid back. The insurance company said they would not change the W2 amount because they did not have "use of the funds" until Jan 4, 2022.  I think it has to be claim of right, because the W2 has the full amount - so maybe I should include it on 2022 tax return. I just dread getting an IRS letter about it and having to prove the payment and seeing the debit from the bank occurring in 2021. Thoughts?